What is transaction-based allocation in SAP CO - Controlling?

SAP Term: transaction-based allocation

• Component: CO

• Component Name: Controlling

• Description: An allocation method by which the costs incurred in a business transaction are calculated from the internal activities performed and then posted in real time to the sender and receiver cost centers or orders. Allocations performed using this method include: Real time repostings Direct internal activity allocation The SAP system supports the following allocation types: Direct internal activity allocation Distribution Assessment Target=actual activity allocation Overhead application for orders, cost centers, and business processes

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• Key Concepts: 
  Transaction-based allocation is a feature of SAP Controlling (CO) that allows users to allocate costs and revenues from one cost center to another. This allocation is based on the transactions that occur in the system, such as sales orders, purchase orders, and other documents. The allocation process can be automated or manual, depending on the user's preference. 
  
  How to use it: 
  To use transaction-based allocation in SAP Controlling, users must first define the cost elements and cost centers that will be used in the allocation process. Then, they must set up the rules for how the costs and revenues will be allocated. Finally, they must run the allocation process to transfer the costs and revenues from one cost center to another. 
  
  Tips & Tricks: 
  When setting up transaction-based allocation in SAP Controlling, it is important to ensure that all of the cost elements and cost centers are correctly defined. This will ensure that the correct amounts are allocated between cost centers. Additionally, it is important to review the rules for the allocation process to make sure that they are accurate and up-to-date. 
  
  Related Information: 
  For more information about transaction-based allocation in SAP Controlling, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips for using this feature of SAP Controlling.